Machinery represents a big financial outlay for any business. Some try to cut down on this expense by renting which, although cheaper in the short term, also means continued costs. Buying machines outright might be a big investment, but there are some distinct advantages associated with ownership.
1. It’s a one-off cost
Perhaps the biggest reason to buy rather than rent is that it is a one-off payment. The cost will inevitably be larger, but once it’s paid it’s paid. One-off purchases can be easier to budget for and don’t cause a drain on company finances every month. If you know that you’ll need the machinery for a long time (or even permanently) it often makes much more sense to buy it outright rather than rent. Over time, rented equipment becomes more expensive than machines that were bought in full.
There are ways to reduce that initial outlay, too. Buying used machines from an online marketplace like recyclingbalers.com is much cheaper than purchasing completely new models. Used or nearly new machines offer substantial savings and some of them have hardly been used. Better still, they undergo the same rigorous tests and safety procedures as new equipment, and many come with warranties for additional peace of mind.
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2. It saves time
True, delivery times on purchased machines can be long (and in some cases extremely long) but there’s a crucial difference. It’s a one-time wait, and once you own the machine it is yours. The renting process is much more convoluted. Having to rent a machine before each job means comparing prices, filling in the paperwork and then waiting for it to be delivered. The waiting period can be just as long (and even longer if there’s high demand) than with buying, which delays your project.
This is especially pertinent for businesses with a lot of work. Missing a deadline or postponing a project because machinery isn’t available will likely leave customers feeling disgruntled. This, in turn, translates into a poor reputation and might deter other people from hiring you. Buying machines simply means more security. You know that your equipment is ready to use whenever you need it.
3. There’s no agreement to sign
Rental agreements aren’t always as flexible as you might hope. Some will lock you into long term use (that works out more expensive than simply buying equipment) while others will impose strict deadlines on your work. Agreements are difficult to get out of and making changes can be costly, especially if there’s a long waiting list of other clients hoping to rent the machine. These agreements also add to the administrative burden of running a business and are simply more complicated than buying a machine outright.
The most paperwork that you’ll have to contend with when buying outright is a deed of purchase and then any insurance. It’s advisable to take out machine breakdown cover, and, if your business is completely reliant on machinery to function, interruption cover is also a good idea.